The partnership of Angel Investor Associates began operations on January 1, 2005, with contributions from two partners as follows:
Jan Strous ...... $31,500
Cara Wright ...... 58,500
Strous and Wright agree to an income-sharing ratio equal to their capital contribution ratio.
The following additional partner transactions took place during the year:
1. In late March, Michael Black is admitted to the partnership by contributing $30,000 cash for a 20% interest. Assets were adjusted downwards by $10,000 prior to admitting Black.
2. Net income of $172,000 was earned in 2006. In addition, Jan Strous received a salary allowance of $12,000 for the year.
3. The partners withdrawals are equal to half of the increase in their capital balances resulting from net income.
Prepare a statement of partnership equity for the year ended December 31, 2006.

  • CreatedNovember 10, 2012
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